Recently deposed OLG executive Kelly McDougald will be suing the Ontario government for wrongful dismissal following her summary termination last week, amid allegations of expense misuse.
As reported in the Canadian Press, McDougald has issued a statement of claim and notified the government of her lawsuit. The claim for wrongful dismissal is rumored to be for 9 million dollars.
In a written statement released by McDougald, he stated that the "actions taken against me by the Ontario government were severe and unjustified and I must therefore seek legal action to establish the facts and restore my reputation."
The Liberal government fired McDougald as head of the lottery corporation in late August and released thousands of pages of "unacceptable" expenses filed by OLG executives at the same time.
The entire OLG board resigned the same day. The expense information released by the Ontario government was done without effort by government to either seek or provide context, McDougald stated.
"While some of these expenses were indeed inappropriate, others were business expenses consistent with the operation of a $6.5 billion revenue-generating corporation, or were part of the employee benefit contract, (while) others were incurred prior to my appointment."
Finance Minister Dwight Duncan said Friday the government would defend McDougald's firing in court.
When former Hydro One chief executive Eleanor Clitheroe was fired in 2002 amid allegations of lavish spending, she launched a $30-million lawsuit against the province that is still before the courts.
There's a 60-day notification period to sue the government.
Although it was open for the government to terminate McDougald without cause – upon paying her severance, the decision to terminate he for cause has prompted the lawsuit.